Capital Gain

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Sam (Querist)
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20 January 2021 I have sold my restaurant business and also the tenancy right of the premises. There was only one agreement made between the purchaser and seller , agreement for sale of business and transfer of tenancy right. In consideration for the transfer of business along with tenancy right I have received the final amount. So what will be the tax implications. I thought that I can invest in 54ec capital gain bonds, but the deductions u/s 54ec is restricted to only transfer of land or building or both. How can I save tax ? Where can I invest ? How will the capital gains be calculated ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 January 2021 Tenancy rights related to land and building so estimate the amount related to it and invest it in 54EC bonds and claim exemption.

Sam

Sam (Querist)
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22 February 2021 I was the sole proprietor of the business, those who acquired the business now running it as a partnership. So does section 47 applies here and its not regarded as transfer? In that case there will be no capital gain right ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 February 2021 Section 47 will not apply here capital gains tax payable.

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